In this RevenueModels lesson, you'll learn how to build a revenue model for a consumer retail company.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Chuck E. Cheese, a kids' restaurant chain that was acquired by Apollo for $1.3 billion, is used in this example since their data is readily available and easy to use
Table of Contents:
0:39 Why Revenue Models Are Important
2:19 How to Set Up Revenue Models - Units Sold and Market Size Methods
3:39 How You Build a Revenue Model - Examples for Different Industries
5:03 Step 1 - Finding Historical Data
5:59 Step 2 - Assumptions for Stores Opened and Closed
8:02 Step 3 - Assumptions for Sales per Store Growth
9:03 Step 4 - Calculating Ending Stores per Year
10:30 Step 5 - Toggle Calculations for Sales per Store
11:08 Step 6 - Splitting Revenue Into Segments
14:20 Step 7 - How to Review and Tweak the Numbers
15:18 Recap and Summary
Why Do Revenue Models Matter?
It's a very common topic in case studies and interviews in IB, PE, HFs, and anything else in finance.
Revenue models can come up in LBO case studies, 3-statement modeling case studies, normal interview questions, and, of course, on the job.
Often, you have enough data to make MORE than just a simple % growth rate assumption for revenue... but not enough data to do the same on the expense side.
Theoretically, you could just say 2%, 3%, 4%, etc. growth each year and project revenue like that.
BUT it's much more credible to say, "We have 50 stores each generating $2 million in annual sales, on average, and we plan to open 5 new stores per year for the next 5 years -- based on that, revenue is expected to be..." rather than "We're assuming 4% revenue growth per year."
The numbers you get will NOT necessarily be different or "more accurate" -- you're still predicting the future!
But at least your numbers will have more real-world support behind them...
What is a Revenue Model?
It can be done many different ways, but most revenue models boil down to Units Sold * Average Selling Price, or Total Market Size * % Market Share.
The best method depends on the available data, the work and research you've done, and what the company discloses.
For this consumer/retail example, it makes the most sense to use a variation on Units Sold * Average Selling Price, since "market share" is almost impossible to establish for a large and fragmented market like restaurants.
How Do You Build a Revenue Model?
For retailers, you can divide revenue into into existing stores vs. new stores and assume a figure for average Sales per SquareFoot/Meter, or Sales per Store, and then make assumptions for new stores opened, stores closed, and how the sales per store figures change over time.
Here's what we cover in this example for Chuck E. Cheese:
Step 1: Get the historical data you need -- in this case, the # of stores opened and closed in prior years, and the average sales per store type. These are all taken from the company's filings.
Step 2: Make assumptions for the # of stores opened and closed each year -- companies often disclose their plans in their filings, or you can extrapolate from historical data. In this case, CEC told us directly how many stores it planned to open over the next 4 years.
Step 3: Assume a growth rate in Sales per Comparable (Existing) Store, and Sales per New Store.
Step 4: Calculate Ending Stores each year, with support for the sensitivity toggles built in so that we can easily modify the assumptions.
Step 5: Now, make similar "post-toggle" calculations for Sales per New Store and Sales per Existing Store.
Step 6: Now, divide the revenue into segments, if applicable... it is very much applicable here! There are different margins for entertainment vs. food and beverages, and there's a clear trend in one direction (away from food and beverages).
Step 7: Now, go back and check your numbers, fill in the miscellaneous and smaller items, and see how equity research estimates (and other sources) compare to what you've come up with.
Go back and tweak your numbers as necessary.
What Next?
Pick a company you're interested in, in an industry that's relatively easy to analyze, and project revenue based on what's in their filings.
It doesn't have to be super-complicated -- for most companies, revenue comes down to less than 5 key drivers.
Avoid conglomerates, companies with tons of business lines, or industries that are more complex, such as oil & gas, commercial banking, etc.
Suggestions: Airlines, technology, consumer/retail, industrials/manufacturing, healthcare is iffy because it can get very complex to model a company with a huge drug portfolio.
Further Resources
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/CEC-Revenue-Model.xlsx

We provide distribution and transportation solutions to some of the world's leading consumer goods companies, including manufacturers and retailers of personal care, household, and food and beverage products. Our deep experience working with companies like Reckitt-Benckiser, Stonyfield Farm, Dr. Pepper/Snapple, and iGPS enables us to give our customers the extreme flexibility the industry demands, while delivering predictable results every day.

APL Logistics is the go-to global supply chain specialist for companies in the Automotive, Consumer, Industrials and Retail sectors.
The company has a global network covering all major markets; backed by a multinational workforce of about 7,700 people. APL Logistics is a member of the Kintetsu World Express group, a global logistics services provider.
************
LinkedIn: https://www.linkedin.com/company/apl-logistics
Facebook: https://www.facebook.com/APLLogistics
Twitter: https://www.twitter.com/APLLogistics
Google+: https://www.google.com/+APLLogisticsOnline
YouTube: https://www.youtube.com/c/APLLogisticsOnline
Wikipedia: https://www.en.wikipedia.org/wiki/APL_Logistics
Website: https://www.apllogistics.com
Email: global_marketing@apllogistics.com

published:24 Feb 2016

views:2982

APL Logistics is the go-to global supply chain specialist for companies in the Automotive, Consumer, Industrials and Retail sectors.
The company has a global network covering all major markets; backed by a multinational workforce of about 7,700 people. APL Logistics is a member of the Kintetsu World Express group, a global logistics services provider.
************
LinkedIn: https://www.linkedin.com/company/apl-logistics
Facebook: https://www.facebook.com/APLLogistics
Twitter: https://www.twitter.com/APLLogistics
Google+: https://www.google.com/+APLLogisticsOnline
YouTube: https://www.youtube.com/c/APLLogisticsOnline
Wikipedia: https://www.en.wikipedia.org/wiki/APL_Logistics
Website: https://www.apllogistics.com
Email: global_marketing@apllogistics.com

History

Pre-merger

In 1980, in response to the increasing importance of Asianimports, U.S.-basedcontainer transportation and shipping company APL created American Consolidation Services (ACS) to meet the needs of importers who wanted help in managing the flow of their Asian goods. As with similar such services, ACS was responsible for "monitoring the movement of goods to consolidation points and managing the consolidation of goods and shipping according to the specifications of buyers." In 1996, ACS obtained a domestic distribution services license in China. Trying to take advantage of the burgeoning Internet, in 1999 it introduced one of the industry’s first Web-based ordering and shipment tracking systems. It was during this period that APL rebranded the service as APL Logistics.

HPE is one of two new publicly listed, Fortune 500 companies created from a split of the original Hewlett-Packard dating back from 1939. The split was completed on November 1, 2015, at which point HP's personal computer and printing business became known as HP Inc.

Naming

The full name for the company is Hewlett Packard Enterprise Co., dropping the hyphen that previously existed between the "Hewlett" and "Packard" of the former Hewlett-Packard Company. During and since the separation many media outlets have incorrectly named the new organization, notably using "HP Enterprises" or "HP Enterprise" as abbreviations. The correct abbreviation of Hewlett Packard Enterprise is HPE. The company name has received criticism due to the sudden dropping of the hyphen and the otherwise lack of recognizable brand name differentiation from the former Hewlett-Packard or new HP Inc, which was one of the stated goals of the separation.

Jim Fowler

Fowler spent his youth in the Town of Falls Church, VA exploring all things in nature in the stream valley of Four Mile Run near his family home. He graduated high school in 1947 from Westtown School, a Quaker college prep school in Chester County, PA. Fowler first served as the co-host of Wild Kingdom with Marlin Perkins, and then became the main host in 1986. While Fowler was serving as host of Wild Kingdom, he received four separate Emmy awards and an endorsement by the National PTA for family viewing.

Hewlett-Packard

The Hewlett-Packard Company (commonly referred to as HP) was an American globalinformationtechnology company headquartered in Palo Alto, California. It developed and provided a wide variety of hardware components as well as software and related services to consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the government, health and education sectors.

The company was founded in a one-car garage in Palo Alto by William "Bill" Redington Hewlett and David "Dave" Packard starting with a line of electronic test equipment. HP was the world's leading PC manufacturer from 2007 to Q2 2013, after which Lenovo remained ranked ahead of HP. It specialized in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services. Major product lines included personal computing devices, enterprise and industry standard servers, related storage devices, networking products, software and a diverse range of printers and other imaging products. HP marketed its products to households, small- to medium-sized businesses and enterprises directly as well as via online distribution, consumer-electronics and office-supply retailers, software partners and major technology vendors. HP also had services and consulting business around its products and partner products.

Revenue Models for Consumer Retail Companies

In this RevenueModels lesson, you'll learn how to build a revenue model for a consumer retail company.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Chuck E. Cheese, a kids' restaurant chain that was acquired by Apollo for $1.3 billion, is used in this example since their data is readily available and easy to use
Table of Contents:
0:39 Why Revenue Models Are Important
2:19 How to Set Up Revenue Models - Units Sold and Market Size Methods
3:39 How You Build a Revenue Model - Examples for Different Industries
5:03 Step 1 - Finding Historical Data
5:59 Step 2 - Assumptions for Stores Opened and Closed
8:02 Step 3 - Assumptions for Sales per Store Growth
9:03 Step 4 - Calculating Ending Stores per Year
10:30 Step 5 - Toggle Calculations for Sales per Store
11:08 Step 6 - Splitting Revenue Into Segments
14:20 Step 7 - How to Review and Tweak the Numbers
15:18 Recap and Summary
Why Do Revenue Models Matter?
It's a very common topic in case studies and interviews in IB, PE, HFs, and anything else in finance.
Revenue models can come up in LBO case studies, 3-statement modeling case studies, normal interview questions, and, of course, on the job.
Often, you have enough data to make MORE than just a simple % growth rate assumption for revenue... but not enough data to do the same on the expense side.
Theoretically, you could just say 2%, 3%, 4%, etc. growth each year and project revenue like that.
BUT it's much more credible to say, "We have 50 stores each generating $2 million in annual sales, on average, and we plan to open 5 new stores per year for the next 5 years -- based on that, revenue is expected to be..." rather than "We're assuming 4% revenue growth per year."
The numbers you get will NOT necessarily be different or "more accurate" -- you're still predicting the future!
But at least your numbers will have more real-world support behind them...
What is a Revenue Model?
It can be done many different ways, but most revenue models boil down to Units Sold * Average Selling Price, or Total Market Size * % Market Share.
The best method depends on the available data, the work and research you've done, and what the company discloses.
For this consumer/retail example, it makes the most sense to use a variation on Units Sold * Average Selling Price, since "market share" is almost impossible to establish for a large and fragmented market like restaurants.
How Do You Build a Revenue Model?
For retailers, you can divide revenue into into existing stores vs. new stores and assume a figure for average Sales per SquareFoot/Meter, or Sales per Store, and then make assumptions for new stores opened, stores closed, and how the sales per store figures change over time.
Here's what we cover in this example for Chuck E. Cheese:
Step 1: Get the historical data you need -- in this case, the # of stores opened and closed in prior years, and the average sales per store type. These are all taken from the company's filings.
Step 2: Make assumptions for the # of stores opened and closed each year -- companies often disclose their plans in their filings, or you can extrapolate from historical data. In this case, CEC told us directly how many stores it planned to open over the next 4 years.
Step 3: Assume a growth rate in Sales per Comparable (Existing) Store, and Sales per New Store.
Step 4: Calculate Ending Stores each year, with support for the sensitivity toggles built in so that we can easily modify the assumptions.
Step 5: Now, make similar "post-toggle" calculations for Sales per New Store and Sales per Existing Store.
Step 6: Now, divide the revenue into segments, if applicable... it is very much applicable here! There are different margins for entertainment vs. food and beverages, and there's a clear trend in one direction (away from food and beverages).
Step 7: Now, go back and check your numbers, fill in the miscellaneous and smaller items, and see how equity research estimates (and other sources) compare to what you've come up with.
Go back and tweak your numbers as necessary.
What Next?
Pick a company you're interested in, in an industry that's relatively easy to analyze, and project revenue based on what's in their filings.
It doesn't have to be super-complicated -- for most companies, revenue comes down to less than 5 key drivers.
Avoid conglomerates, companies with tons of business lines, or industries that are more complex, such as oil & gas, commercial banking, etc.
Suggestions: Airlines, technology, consumer/retail, industrials/manufacturing, healthcare is iffy because it can get very complex to model a company with a huge drug portfolio.
Further Resources
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/CEC-Revenue-Model.xlsx

2:16

Sector Spotlight: industrials

Sector Spotlight: industrials

Sector Spotlight: industrials

Ryder's Consumer Products Industry Expertise

We provide distribution and transportation solutions to some of the world's leading consumer goods companies, including manufacturers and retailers of personal care, household, and food and beverage products. Our deep experience working with companies like Reckitt-Benckiser, Stonyfield Farm, Dr. Pepper/Snapple, and iGPS enables us to give our customers the extreme flexibility the industry demands, while delivering predictable results every day.

Industry Classification

APL Logistics | Country Showcase

APL Logistics is the go-to global supply chain specialist for companies in the Automotive, Consumer, Industrials and Retail sectors.
The company has a global network covering all major markets; backed by a multinational workforce of about 7,700 people. APL Logistics is a member of the Kintetsu World Express group, a global logistics services provider.
************
LinkedIn: https://www.linkedin.com/company/apl-logistics
Facebook: https://www.facebook.com/APLLogistics
Twitter: https://www.twitter.com/APLLogistics
Google+: https://www.google.com/+APLLogisticsOnline
YouTube: https://www.youtube.com/c/APLLogisticsOnline
Wikipedia: https://www.en.wikipedia.org/wiki/APL_Logistics
Website: https://www.apllogistics.com
Email: global_marketing@apllogistics.com

11:03

APL Logistics | Country Showcase 2017

APL Logistics | Country Showcase 2017

APL Logistics | Country Showcase 2017

APL Logistics is the go-to global supply chain specialist for companies in the Automotive, Consumer, Industrials and Retail sectors.
The company has a global network covering all major markets; backed by a multinational workforce of about 7,700 people. APL Logistics is a member of the Kintetsu World Express group, a global logistics services provider.
************
LinkedIn: https://www.linkedin.com/company/apl-logistics
Facebook: https://www.facebook.com/APLLogistics
Twitter: https://www.twitter.com/APLLogistics
Google+: https://www.google.com/+APLLogisticsOnline
YouTube: https://www.youtube.com/c/APLLogisticsOnline
Wikipedia: https://www.en.wikipedia.org/wiki/APL_Logistics
Website: https://www.apllogistics.com
Email: global_marketing@apllogistics.com

Sector Spotlight | Industrials: April 11, 2017

7:15

Noctua Industrial PPC Fans!

Noctua Industrial PPC Fans!

Noctua Industrial PPC Fans!

Noctua is back in black. Finally they're here. You can have the best fans available and have your eyes not fall out of their sockets from the ugly. Did I mention they're water and dust resistant???
Modis Geekstakes Link: http://bit.ly/1mitWD0
Pricing & discussion: http://linustechtips.com/main/topic/161566-noctua-industrial-ppc-fans/
Support us: http://linustechtips.com/main/topic/75969-support-linus-tech-tips-our-affiliates-and-sponsors/
Join our community forum: http://bit.ly/ZkLvE7
https://twitter.com/linustech
http://www.facebook.com/LinusTech
IntroScreenMusicCredit: Adhesive Wombat - Check out his channel here: http://youtube.com/adhesivewombat
Outro Screen Music Credit: Approaching Nirvana - Sugar High http://www.youtube.com/approachingnirvana

2:54

GE Digital and Hewlett Packard Enterprise: Working Together on the IoT

GE Digital and Hewlett Packard Enterprise: Working Together on the IoT

GE Digital and Hewlett Packard Enterprise: Working Together on the IoT

Find out how the GE Digital & Hewlett Packard Enterprise partnership is going to build for the IndustrialInternet together.
The most valuable companies of the future are going to be the ones that drive the best outcomes on industrial assets. As partners, GE Digital and Hewlett Packard Enterprise (HPE) are going to do just that by helping our customers optimize their services around their industrial products, help them rethink their digital strategy, and identify new kinds of offerings for the Industrial Internet.
Check out the video to hear Bill Ruh, CEO, GE Digital and Chief Digital Officer, GE, and Jim Fowler, Chief Information Officer, GE, share their insights on our partnership with HPE and how we're going to build the Industrial Internet together.
Learn more about the GE Digital AllianceProgram at https://www.ge.com/digital/partners
Subscribe to the GE Digital Channel: http://www.youtube.com/user/industrialinternet?sub_confirmation=1
Connect with GE Digital Online:
Visit GE Digital’s Website: https://www.ge.com/digital
Follow GE on Twitter: https://twitter.com/GE_Digital
Find GE on LinkedIn: https://www.linkedin.com/company/2681277
Transcript:
Bill Ruh, CEO of GE Digital
Imagine a world where nothing ever breaks. Can we get greater fuel efficiency on a machine? Can the machine generate more electricity? Can we ensure that we can get rid of unscheduled downtime? These are the kinds of ground-breaking changes we're going to see.
If you think about the importance of the industrial Internet it's really about what the next decade is going to focus on the last decade was about the consumer internet. What we're talking about now is the same kind of transformation we saw in these consumer businesses in the industrial sector.
Jim Fowler, CIO GE Digital
GE Digital is all about recognizing that digital industrials are really what's going to spur the growth over the next 20 years.
Bill Ruh: Take machines but more sensors than ever before, pull data off those machines and drive greater productivity and efficiency in every part of the industrial value chain
Jim Fowler: Downtime is bad it's reduces your operating profit in the plant. It causes quality issues and so taking that data and combining it with enterprise data around demand, volume loads lets you really get the most throughput out of the product
Bill Ruh: Working with our partners like HPE we are helping our customers optimize their services around their industrial products and get benefit in a very quick win. And then helping them rethink their digital strategy and look to new kinds of offerings we feel we can do this with any industrial company.
The ability to partner together is absolutely essential because nobody can do everything in the industrial Internet.
HPE has been a great partner, they bring unique expertise to us. We began with our Predix platform cloud and using the HP Proliant servers, but that is not the end that's just the beginning.
Predix is a hybrid cloud and we have the ability to run in public cloud offerings for customers that want it that way as well is on our own private cloud.
Jim Fowler: We had to really look hard to find a partner who could provide the infrastructure to work in that hybrid cloud and we're really happy with what we found with Hewlett Packard Enterprise.
Bill Ruh: You can collect data of an industrial nature build industrial analytics and then distribute that out to people and two machines to be much more efficient.
Jim Fowler: we've announced agreements with other industrial companies who are going to use our Predix platform to improve the operations for themselves and for their customers I think this is a game changer really not just for our company but more importantly for our customers and it’s really what's going to spur their growth.
Bill Ruh: The most valuable companies on the planet are going to be those who can drive the best outcomes on industrial assets, and for GE, we’re a company that's in the business of building these industrial assets these are going to be unique opportunities for us an HPE, that's what excites me.

Revenue Models for Consumer Retail Companies

In this RevenueModels lesson, you'll learn how to build a revenue model for a consumer retail company.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Chuck E. Cheese, a kids' restaurant chain that was acquired by Apollo for $1.3 billion, is used in this example since their data is readily available and easy to use
Table of Contents:
0:39 Why Revenue Models Are Important
2:19 How to Set Up Revenue Models - Units Sold and Market Size Methods
3:39 How You Build a Revenue Model - Examples for Different Industries
5:03 Step 1 - Finding Historical Data
5:59 Step 2 - Assumptions for Stores Opened and Closed
8:02 Step 3 - Assumptions for Sales per Store Growth
9:03 Step 4 - Calculating Ending Stores per Year
10:30...

published: 08 Apr 2014

Sector Spotlight: industrials

Ryder's Consumer Products Industry Expertise

We provide distribution and transportation solutions to some of the world's leading consumer goods companies, including manufacturers and retailers of personal care, household, and food and beverage products. Our deep experience working with companies like Reckitt-Benckiser, Stonyfield Farm, Dr. Pepper/Snapple, and iGPS enables us to give our customers the extreme flexibility the industry demands, while delivering predictable results every day.

published: 25 Apr 2012

Industry Classification

APL Logistics | Country Showcase

APL Logistics is the go-to global supply chain specialist for companies in the Automotive, Consumer, Industrials and Retail sectors.
The company has a global network covering all major markets; backed by a multinational workforce of about 7,700 people. APL Logistics is a member of the Kintetsu World Express group, a global logistics services provider.
************
LinkedIn: https://www.linkedin.com/company/apl-logistics
Facebook: https://www.facebook.com/APLLogistics
Twitter: https://www.twitter.com/APLLogistics
Google+: https://www.google.com/+APLLogisticsOnline
YouTube: https://www.youtube.com/c/APLLogisticsOnline
Wikipedia: https://www.en.wikipedia.org/wiki/APL_Logistics
Website: https://www.apllogistics.com
Email: global_marketing@apllogistics.com

published: 24 Feb 2016

APL Logistics | Country Showcase 2017

APL Logistics is the go-to global supply chain specialist for companies in the Automotive, Consumer, Industrials and Retail sectors.
The company has a global network covering all major markets; backed by a multinational workforce of about 7,700 people. APL Logistics is a member of the Kintetsu World Express group, a global logistics services provider.
************
LinkedIn: https://www.linkedin.com/company/apl-logistics
Facebook: https://www.facebook.com/APLLogistics
Twitter: https://www.twitter.com/APLLogistics
Google+: https://www.google.com/+APLLogisticsOnline
YouTube: https://www.youtube.com/c/APLLogisticsOnline
Wikipedia: https://www.en.wikipedia.org/wiki/APL_Logistics
Website: https://www.apllogistics.com
Email: global_marketing@apllogistics.com

Sector Spotlight | Industrials: April 11, 2017

published: 12 Apr 2017

Noctua Industrial PPC Fans!

Noctua is back in black. Finally they're here. You can have the best fans available and have your eyes not fall out of their sockets from the ugly. Did I mention they're water and dust resistant???
Modis Geekstakes Link: http://bit.ly/1mitWD0
Pricing & discussion: http://linustechtips.com/main/topic/161566-noctua-industrial-ppc-fans/
Support us: http://linustechtips.com/main/topic/75969-support-linus-tech-tips-our-affiliates-and-sponsors/
Join our community forum: http://bit.ly/ZkLvE7
https://twitter.com/linustech
http://www.facebook.com/LinusTech
IntroScreenMusicCredit: Adhesive Wombat - Check out his channel here: http://youtube.com/adhesivewombat
Outro Screen Music Credit: Approaching Nirvana - Sugar High http://www.youtube.com/approachingnirvana

published: 04 Jun 2014

GE Digital and Hewlett Packard Enterprise: Working Together on the IoT

Find out how the GE Digital & Hewlett Packard Enterprise partnership is going to build for the IndustrialInternet together.
The most valuable companies of the future are going to be the ones that drive the best outcomes on industrial assets. As partners, GE Digital and Hewlett Packard Enterprise (HPE) are going to do just that by helping our customers optimize their services around their industrial products, help them rethink their digital strategy, and identify new kinds of offerings for the Industrial Internet.
Check out the video to hear Bill Ruh, CEO, GE Digital and Chief Digital Officer, GE, and Jim Fowler, Chief Information Officer, GE, share their insights on our partnership with HPE and how we're going to build the Industrial Internet together.
Learn more about the GE Digital ...

Revenue Models for Consumer Retail Companies

In this RevenueModels lesson, you'll learn how to build a revenue model for a consumer retail company.
By http://breakingintowallstreet.com/ "Financial Modeli...

In this RevenueModels lesson, you'll learn how to build a revenue model for a consumer retail company.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Chuck E. Cheese, a kids' restaurant chain that was acquired by Apollo for $1.3 billion, is used in this example since their data is readily available and easy to use
Table of Contents:
0:39 Why Revenue Models Are Important
2:19 How to Set Up Revenue Models - Units Sold and Market Size Methods
3:39 How You Build a Revenue Model - Examples for Different Industries
5:03 Step 1 - Finding Historical Data
5:59 Step 2 - Assumptions for Stores Opened and Closed
8:02 Step 3 - Assumptions for Sales per Store Growth
9:03 Step 4 - Calculating Ending Stores per Year
10:30 Step 5 - Toggle Calculations for Sales per Store
11:08 Step 6 - Splitting Revenue Into Segments
14:20 Step 7 - How to Review and Tweak the Numbers
15:18 Recap and Summary
Why Do Revenue Models Matter?
It's a very common topic in case studies and interviews in IB, PE, HFs, and anything else in finance.
Revenue models can come up in LBO case studies, 3-statement modeling case studies, normal interview questions, and, of course, on the job.
Often, you have enough data to make MORE than just a simple % growth rate assumption for revenue... but not enough data to do the same on the expense side.
Theoretically, you could just say 2%, 3%, 4%, etc. growth each year and project revenue like that.
BUT it's much more credible to say, "We have 50 stores each generating $2 million in annual sales, on average, and we plan to open 5 new stores per year for the next 5 years -- based on that, revenue is expected to be..." rather than "We're assuming 4% revenue growth per year."
The numbers you get will NOT necessarily be different or "more accurate" -- you're still predicting the future!
But at least your numbers will have more real-world support behind them...
What is a Revenue Model?
It can be done many different ways, but most revenue models boil down to Units Sold * Average Selling Price, or Total Market Size * % Market Share.
The best method depends on the available data, the work and research you've done, and what the company discloses.
For this consumer/retail example, it makes the most sense to use a variation on Units Sold * Average Selling Price, since "market share" is almost impossible to establish for a large and fragmented market like restaurants.
How Do You Build a Revenue Model?
For retailers, you can divide revenue into into existing stores vs. new stores and assume a figure for average Sales per SquareFoot/Meter, or Sales per Store, and then make assumptions for new stores opened, stores closed, and how the sales per store figures change over time.
Here's what we cover in this example for Chuck E. Cheese:
Step 1: Get the historical data you need -- in this case, the # of stores opened and closed in prior years, and the average sales per store type. These are all taken from the company's filings.
Step 2: Make assumptions for the # of stores opened and closed each year -- companies often disclose their plans in their filings, or you can extrapolate from historical data. In this case, CEC told us directly how many stores it planned to open over the next 4 years.
Step 3: Assume a growth rate in Sales per Comparable (Existing) Store, and Sales per New Store.
Step 4: Calculate Ending Stores each year, with support for the sensitivity toggles built in so that we can easily modify the assumptions.
Step 5: Now, make similar "post-toggle" calculations for Sales per New Store and Sales per Existing Store.
Step 6: Now, divide the revenue into segments, if applicable... it is very much applicable here! There are different margins for entertainment vs. food and beverages, and there's a clear trend in one direction (away from food and beverages).
Step 7: Now, go back and check your numbers, fill in the miscellaneous and smaller items, and see how equity research estimates (and other sources) compare to what you've come up with.
Go back and tweak your numbers as necessary.
What Next?
Pick a company you're interested in, in an industry that's relatively easy to analyze, and project revenue based on what's in their filings.
It doesn't have to be super-complicated -- for most companies, revenue comes down to less than 5 key drivers.
Avoid conglomerates, companies with tons of business lines, or industries that are more complex, such as oil & gas, commercial banking, etc.
Suggestions: Airlines, technology, consumer/retail, industrials/manufacturing, healthcare is iffy because it can get very complex to model a company with a huge drug portfolio.
Further Resources
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/CEC-Revenue-Model.xlsx

In this RevenueModels lesson, you'll learn how to build a revenue model for a consumer retail company.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Chuck E. Cheese, a kids' restaurant chain that was acquired by Apollo for $1.3 billion, is used in this example since their data is readily available and easy to use
Table of Contents:
0:39 Why Revenue Models Are Important
2:19 How to Set Up Revenue Models - Units Sold and Market Size Methods
3:39 How You Build a Revenue Model - Examples for Different Industries
5:03 Step 1 - Finding Historical Data
5:59 Step 2 - Assumptions for Stores Opened and Closed
8:02 Step 3 - Assumptions for Sales per Store Growth
9:03 Step 4 - Calculating Ending Stores per Year
10:30 Step 5 - Toggle Calculations for Sales per Store
11:08 Step 6 - Splitting Revenue Into Segments
14:20 Step 7 - How to Review and Tweak the Numbers
15:18 Recap and Summary
Why Do Revenue Models Matter?
It's a very common topic in case studies and interviews in IB, PE, HFs, and anything else in finance.
Revenue models can come up in LBO case studies, 3-statement modeling case studies, normal interview questions, and, of course, on the job.
Often, you have enough data to make MORE than just a simple % growth rate assumption for revenue... but not enough data to do the same on the expense side.
Theoretically, you could just say 2%, 3%, 4%, etc. growth each year and project revenue like that.
BUT it's much more credible to say, "We have 50 stores each generating $2 million in annual sales, on average, and we plan to open 5 new stores per year for the next 5 years -- based on that, revenue is expected to be..." rather than "We're assuming 4% revenue growth per year."
The numbers you get will NOT necessarily be different or "more accurate" -- you're still predicting the future!
But at least your numbers will have more real-world support behind them...
What is a Revenue Model?
It can be done many different ways, but most revenue models boil down to Units Sold * Average Selling Price, or Total Market Size * % Market Share.
The best method depends on the available data, the work and research you've done, and what the company discloses.
For this consumer/retail example, it makes the most sense to use a variation on Units Sold * Average Selling Price, since "market share" is almost impossible to establish for a large and fragmented market like restaurants.
How Do You Build a Revenue Model?
For retailers, you can divide revenue into into existing stores vs. new stores and assume a figure for average Sales per SquareFoot/Meter, or Sales per Store, and then make assumptions for new stores opened, stores closed, and how the sales per store figures change over time.
Here's what we cover in this example for Chuck E. Cheese:
Step 1: Get the historical data you need -- in this case, the # of stores opened and closed in prior years, and the average sales per store type. These are all taken from the company's filings.
Step 2: Make assumptions for the # of stores opened and closed each year -- companies often disclose their plans in their filings, or you can extrapolate from historical data. In this case, CEC told us directly how many stores it planned to open over the next 4 years.
Step 3: Assume a growth rate in Sales per Comparable (Existing) Store, and Sales per New Store.
Step 4: Calculate Ending Stores each year, with support for the sensitivity toggles built in so that we can easily modify the assumptions.
Step 5: Now, make similar "post-toggle" calculations for Sales per New Store and Sales per Existing Store.
Step 6: Now, divide the revenue into segments, if applicable... it is very much applicable here! There are different margins for entertainment vs. food and beverages, and there's a clear trend in one direction (away from food and beverages).
Step 7: Now, go back and check your numbers, fill in the miscellaneous and smaller items, and see how equity research estimates (and other sources) compare to what you've come up with.
Go back and tweak your numbers as necessary.
What Next?
Pick a company you're interested in, in an industry that's relatively easy to analyze, and project revenue based on what's in their filings.
It doesn't have to be super-complicated -- for most companies, revenue comes down to less than 5 key drivers.
Avoid conglomerates, companies with tons of business lines, or industries that are more complex, such as oil & gas, commercial banking, etc.
Suggestions: Airlines, technology, consumer/retail, industrials/manufacturing, healthcare is iffy because it can get very complex to model a company with a huge drug portfolio.
Further Resources
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/CEC-Revenue-Model.xlsx

Ryder's Consumer Products Industry Expertise

We provide distribution and transportation solutions to some of the world's leading consumer goods companies, including manufacturers and retailers of personal ...

We provide distribution and transportation solutions to some of the world's leading consumer goods companies, including manufacturers and retailers of personal care, household, and food and beverage products. Our deep experience working with companies like Reckitt-Benckiser, Stonyfield Farm, Dr. Pepper/Snapple, and iGPS enables us to give our customers the extreme flexibility the industry demands, while delivering predictable results every day.

We provide distribution and transportation solutions to some of the world's leading consumer goods companies, including manufacturers and retailers of personal care, household, and food and beverage products. Our deep experience working with companies like Reckitt-Benckiser, Stonyfield Farm, Dr. Pepper/Snapple, and iGPS enables us to give our customers the extreme flexibility the industry demands, while delivering predictable results every day.

APL Logistics is the go-to global supply chain specialist for companies in the Automotive, Consumer, Industrials and Retail sectors.
The company has a global network covering all major markets; backed by a multinational workforce of about 7,700 people. APL Logistics is a member of the Kintetsu World Express group, a global logistics services provider.
************
LinkedIn: https://www.linkedin.com/company/apl-logistics
Facebook: https://www.facebook.com/APLLogistics
Twitter: https://www.twitter.com/APLLogistics
Google+: https://www.google.com/+APLLogisticsOnline
YouTube: https://www.youtube.com/c/APLLogisticsOnline
Wikipedia: https://www.en.wikipedia.org/wiki/APL_Logistics
Website: https://www.apllogistics.com
Email: global_marketing@apllogistics.com

APL Logistics is the go-to global supply chain specialist for companies in the Automotive, Consumer, Industrials and Retail sectors.
The company has a global network covering all major markets; backed by a multinational workforce of about 7,700 people. APL Logistics is a member of the Kintetsu World Express group, a global logistics services provider.
************
LinkedIn: https://www.linkedin.com/company/apl-logistics
Facebook: https://www.facebook.com/APLLogistics
Twitter: https://www.twitter.com/APLLogistics
Google+: https://www.google.com/+APLLogisticsOnline
YouTube: https://www.youtube.com/c/APLLogisticsOnline
Wikipedia: https://www.en.wikipedia.org/wiki/APL_Logistics
Website: https://www.apllogistics.com
Email: global_marketing@apllogistics.com

APL Logistics is the go-to global supply chain specialist for companies in the Automotive, Consumer, Industrials and Retail sectors.
The company has a global network covering all major markets; backed by a multinational workforce of about 7,700 people. APL Logistics is a member of the Kintetsu World Express group, a global logistics services provider.
************
LinkedIn: https://www.linkedin.com/company/apl-logistics
Facebook: https://www.facebook.com/APLLogistics
Twitter: https://www.twitter.com/APLLogistics
Google+: https://www.google.com/+APLLogisticsOnline
YouTube: https://www.youtube.com/c/APLLogisticsOnline
Wikipedia: https://www.en.wikipedia.org/wiki/APL_Logistics
Website: https://www.apllogistics.com
Email: global_marketing@apllogistics.com

APL Logistics is the go-to global supply chain specialist for companies in the Automotive, Consumer, Industrials and Retail sectors.
The company has a global network covering all major markets; backed by a multinational workforce of about 7,700 people. APL Logistics is a member of the Kintetsu World Express group, a global logistics services provider.
************
LinkedIn: https://www.linkedin.com/company/apl-logistics
Facebook: https://www.facebook.com/APLLogistics
Twitter: https://www.twitter.com/APLLogistics
Google+: https://www.google.com/+APLLogisticsOnline
YouTube: https://www.youtube.com/c/APLLogisticsOnline
Wikipedia: https://www.en.wikipedia.org/wiki/APL_Logistics
Website: https://www.apllogistics.com
Email: global_marketing@apllogistics.com

Noctua Industrial PPC Fans!

Noctua is back in black. Finally they're here. You can have the best fans available and have your eyes not fall out of their sockets from the ugly. Did I mentio...

Noctua is back in black. Finally they're here. You can have the best fans available and have your eyes not fall out of their sockets from the ugly. Did I mention they're water and dust resistant???
Modis Geekstakes Link: http://bit.ly/1mitWD0
Pricing & discussion: http://linustechtips.com/main/topic/161566-noctua-industrial-ppc-fans/
Support us: http://linustechtips.com/main/topic/75969-support-linus-tech-tips-our-affiliates-and-sponsors/
Join our community forum: http://bit.ly/ZkLvE7
https://twitter.com/linustech
http://www.facebook.com/LinusTech
IntroScreenMusicCredit: Adhesive Wombat - Check out his channel here: http://youtube.com/adhesivewombat
Outro Screen Music Credit: Approaching Nirvana - Sugar High http://www.youtube.com/approachingnirvana

Noctua is back in black. Finally they're here. You can have the best fans available and have your eyes not fall out of their sockets from the ugly. Did I mention they're water and dust resistant???
Modis Geekstakes Link: http://bit.ly/1mitWD0
Pricing & discussion: http://linustechtips.com/main/topic/161566-noctua-industrial-ppc-fans/
Support us: http://linustechtips.com/main/topic/75969-support-linus-tech-tips-our-affiliates-and-sponsors/
Join our community forum: http://bit.ly/ZkLvE7
https://twitter.com/linustech
http://www.facebook.com/LinusTech
IntroScreenMusicCredit: Adhesive Wombat - Check out his channel here: http://youtube.com/adhesivewombat
Outro Screen Music Credit: Approaching Nirvana - Sugar High http://www.youtube.com/approachingnirvana

published:04 Jun 2014

views:433988

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GE Digital and Hewlett Packard Enterprise: Working Together on the IoT

Find out how the GE Digital & Hewlett Packard Enterprise partnership is going to build for the IndustrialInternet together.
The most valuable companies of the future are going to be the ones that drive the best outcomes on industrial assets. As partners, GE Digital and Hewlett Packard Enterprise (HPE) are going to do just that by helping our customers optimize their services around their industrial products, help them rethink their digital strategy, and identify new kinds of offerings for the Industrial Internet.
Check out the video to hear Bill Ruh, CEO, GE Digital and Chief Digital Officer, GE, and Jim Fowler, Chief Information Officer, GE, share their insights on our partnership with HPE and how we're going to build the Industrial Internet together.
Learn more about the GE Digital AllianceProgram at https://www.ge.com/digital/partners
Subscribe to the GE Digital Channel: http://www.youtube.com/user/industrialinternet?sub_confirmation=1
Connect with GE Digital Online:
Visit GE Digital’s Website: https://www.ge.com/digital
Follow GE on Twitter: https://twitter.com/GE_Digital
Find GE on LinkedIn: https://www.linkedin.com/company/2681277
Transcript:
Bill Ruh, CEO of GE Digital
Imagine a world where nothing ever breaks. Can we get greater fuel efficiency on a machine? Can the machine generate more electricity? Can we ensure that we can get rid of unscheduled downtime? These are the kinds of ground-breaking changes we're going to see.
If you think about the importance of the industrial Internet it's really about what the next decade is going to focus on the last decade was about the consumer internet. What we're talking about now is the same kind of transformation we saw in these consumer businesses in the industrial sector.
Jim Fowler, CIO GE Digital
GE Digital is all about recognizing that digital industrials are really what's going to spur the growth over the next 20 years.
Bill Ruh: Take machines but more sensors than ever before, pull data off those machines and drive greater productivity and efficiency in every part of the industrial value chain
Jim Fowler: Downtime is bad it's reduces your operating profit in the plant. It causes quality issues and so taking that data and combining it with enterprise data around demand, volume loads lets you really get the most throughput out of the product
Bill Ruh: Working with our partners like HPE we are helping our customers optimize their services around their industrial products and get benefit in a very quick win. And then helping them rethink their digital strategy and look to new kinds of offerings we feel we can do this with any industrial company.
The ability to partner together is absolutely essential because nobody can do everything in the industrial Internet.
HPE has been a great partner, they bring unique expertise to us. We began with our Predix platform cloud and using the HP Proliant servers, but that is not the end that's just the beginning.
Predix is a hybrid cloud and we have the ability to run in public cloud offerings for customers that want it that way as well is on our own private cloud.
Jim Fowler: We had to really look hard to find a partner who could provide the infrastructure to work in that hybrid cloud and we're really happy with what we found with Hewlett Packard Enterprise.
Bill Ruh: You can collect data of an industrial nature build industrial analytics and then distribute that out to people and two machines to be much more efficient.
Jim Fowler: we've announced agreements with other industrial companies who are going to use our Predix platform to improve the operations for themselves and for their customers I think this is a game changer really not just for our company but more importantly for our customers and it’s really what's going to spur their growth.
Bill Ruh: The most valuable companies on the planet are going to be those who can drive the best outcomes on industrial assets, and for GE, we’re a company that's in the business of building these industrial assets these are going to be unique opportunities for us an HPE, that's what excites me.

Find out how the GE Digital & Hewlett Packard Enterprise partnership is going to build for the IndustrialInternet together.
The most valuable companies of the future are going to be the ones that drive the best outcomes on industrial assets. As partners, GE Digital and Hewlett Packard Enterprise (HPE) are going to do just that by helping our customers optimize their services around their industrial products, help them rethink their digital strategy, and identify new kinds of offerings for the Industrial Internet.
Check out the video to hear Bill Ruh, CEO, GE Digital and Chief Digital Officer, GE, and Jim Fowler, Chief Information Officer, GE, share their insights on our partnership with HPE and how we're going to build the Industrial Internet together.
Learn more about the GE Digital AllianceProgram at https://www.ge.com/digital/partners
Subscribe to the GE Digital Channel: http://www.youtube.com/user/industrialinternet?sub_confirmation=1
Connect with GE Digital Online:
Visit GE Digital’s Website: https://www.ge.com/digital
Follow GE on Twitter: https://twitter.com/GE_Digital
Find GE on LinkedIn: https://www.linkedin.com/company/2681277
Transcript:
Bill Ruh, CEO of GE Digital
Imagine a world where nothing ever breaks. Can we get greater fuel efficiency on a machine? Can the machine generate more electricity? Can we ensure that we can get rid of unscheduled downtime? These are the kinds of ground-breaking changes we're going to see.
If you think about the importance of the industrial Internet it's really about what the next decade is going to focus on the last decade was about the consumer internet. What we're talking about now is the same kind of transformation we saw in these consumer businesses in the industrial sector.
Jim Fowler, CIO GE Digital
GE Digital is all about recognizing that digital industrials are really what's going to spur the growth over the next 20 years.
Bill Ruh: Take machines but more sensors than ever before, pull data off those machines and drive greater productivity and efficiency in every part of the industrial value chain
Jim Fowler: Downtime is bad it's reduces your operating profit in the plant. It causes quality issues and so taking that data and combining it with enterprise data around demand, volume loads lets you really get the most throughput out of the product
Bill Ruh: Working with our partners like HPE we are helping our customers optimize their services around their industrial products and get benefit in a very quick win. And then helping them rethink their digital strategy and look to new kinds of offerings we feel we can do this with any industrial company.
The ability to partner together is absolutely essential because nobody can do everything in the industrial Internet.
HPE has been a great partner, they bring unique expertise to us. We began with our Predix platform cloud and using the HP Proliant servers, but that is not the end that's just the beginning.
Predix is a hybrid cloud and we have the ability to run in public cloud offerings for customers that want it that way as well is on our own private cloud.
Jim Fowler: We had to really look hard to find a partner who could provide the infrastructure to work in that hybrid cloud and we're really happy with what we found with Hewlett Packard Enterprise.
Bill Ruh: You can collect data of an industrial nature build industrial analytics and then distribute that out to people and two machines to be much more efficient.
Jim Fowler: we've announced agreements with other industrial companies who are going to use our Predix platform to improve the operations for themselves and for their customers I think this is a game changer really not just for our company but more importantly for our customers and it’s really what's going to spur their growth.
Bill Ruh: The most valuable companies on the planet are going to be those who can drive the best outcomes on industrial assets, and for GE, we’re a company that's in the business of building these industrial assets these are going to be unique opportunities for us an HPE, that's what excites me.

Sector Spotlight | Industrials: April 11, 2017

Sector Spotlight | Restaurants & Consumer Staples 5/2/2017

Our Industrials team, Jay Van Sciver and David Talbott, have spent much of the last couple of weeks traveling and speaking with investors.
Catch this special edition of SectorSpotlight and hear the key takeaways for their favorite long and short ideas. The topic of discussion was, "TrumpPolicyExpectations vs. Earnings Uncertainty | A Major Secular Risk."
Companies the Industrials team discussed included, Deere (DE), Wabtec (WAB), Textron (TXT) and more...
TOPICS INCLUDED:
Trump Policy Uncertainty: There is much less consensus on the impact of the Trump administration and a Republican Congress than we might have expected. While the first order effects of policy proposals can seem clear, investors are hesitant to forecast either implementation or its net impact.
Defending Exis...

published: 25 Jan 2017

Leadership in the 21st Century and Global Forces: Dominic Barton, McKinsey

Citi’s 2017 Investor Day: Institutional Clients Group

Jamie Forese, Citigroup President and CEO, Institutional ClientsGroup, presented on the strategy and performance of Citi’s institutional business at Citi’s 2017 Investor Day on July 25, 2017.
View other Citi videos: http://www.youtube.com/citi
Read our Blog: http://blog.citigroup.com
Like us on Facebook: http://www.facebook.com/citi
Follow us on Twitter: http://www.twitter.com/citi
Follow us on LinkedIn: http://www.linkedin.com/company/citi
Follow us on Instagram: http://www.instagram.com/citi
Follow us on Google+: http://www.google.com/+citi

We're mixing things up this week on IndustryFocus with some cross sector topics. To kick it off, Tyler Crowe of the Energy & Industrials team joins Gaby for the Finance show to talk about how captive finance companies fit into the role of a industrial manufacturer and the challenges they can present for a company.
This podcast was recorded on Feb. 8, 2016.
Imagine owning Amazon.com (up over an insane 4,000% since 2001) when Internet sales rendered big-box retailers obsolete... Now an industry 99% of us use daily is set to implode... And 3 established companies are positioned to take advantage. Clickhttp://bit.ly/1zQXjzy for a stunning presentation.
------------------------------------------------------------------------
Subscribe to The Motley Fool's YouTube Channel:
http://www.you...

Consumer Goods: From the Farm to Your Dinner Table – The Lifecycle of a Chipotle Burrito

For over 20 years, Chipotle has prided itself on fresh, quality ingredients sourced from only the best vendors -- in other words, “food with integrity”.
Asit Sharma joins IndustryFocus to discuss the company’s suppliers, its high standards, and some of the growing pains Chipotle has encountered adapting its supply chain to work for over 2,000 restaurants.
This podcast was recorded on May 24, 2016.
Imagine owning Amazon.com (up over an insane 4,000% since 2001) when Internet sales rendered big-box retailers obsolete... Now an industry 99% of us use daily is set to implode... And 3 established companies are positioned to take advantage. Clickhttp://bit.ly/1zQXjzy for a stunning presentation.
------------------------------------------------------------------------
Subscribe to The Mot...

published: 25 May 2016

How to Invest in the Stock Market for Beginners | step-by-step tutorial

Our Industrials team, Jay Van Sciver and David Talbott, have spent much of the last couple of weeks traveling and speaking with investors.
Catch this specia...

Our Industrials team, Jay Van Sciver and David Talbott, have spent much of the last couple of weeks traveling and speaking with investors.
Catch this special edition of SectorSpotlight and hear the key takeaways for their favorite long and short ideas. The topic of discussion was, "TrumpPolicyExpectations vs. Earnings Uncertainty | A Major Secular Risk."
Companies the Industrials team discussed included, Deere (DE), Wabtec (WAB), Textron (TXT) and more...
TOPICS INCLUDED:
Trump Policy Uncertainty: There is much less consensus on the impact of the Trump administration and a Republican Congress than we might have expected. While the first order effects of policy proposals can seem clear, investors are hesitant to forecast either implementation or its net impact.
Defending Existing Views, Positions: Our sense is that investors have not moved very far in adjusting to a new policy environment. Some investors try to frame evolving policy through their existing positions.
Investors Want New Longs, Not Shorts: Perhaps not wanting to miss out on a potential Trump cyclical upswing, few investors were interested in discussing new short ideas.
Investors Will Care About 2017 Results As Policy Clarifies: As policy clarifies, earnings should come back into focus. Notions like investors ‘don’t care about 2017’ or will ‘look through the industrials cycle’ are misreading policy uncertainty trumping earnings uncertainty.

Our Industrials team, Jay Van Sciver and David Talbott, have spent much of the last couple of weeks traveling and speaking with investors.
Catch this special edition of SectorSpotlight and hear the key takeaways for their favorite long and short ideas. The topic of discussion was, "TrumpPolicyExpectations vs. Earnings Uncertainty | A Major Secular Risk."
Companies the Industrials team discussed included, Deere (DE), Wabtec (WAB), Textron (TXT) and more...
TOPICS INCLUDED:
Trump Policy Uncertainty: There is much less consensus on the impact of the Trump administration and a Republican Congress than we might have expected. While the first order effects of policy proposals can seem clear, investors are hesitant to forecast either implementation or its net impact.
Defending Existing Views, Positions: Our sense is that investors have not moved very far in adjusting to a new policy environment. Some investors try to frame evolving policy through their existing positions.
Investors Want New Longs, Not Shorts: Perhaps not wanting to miss out on a potential Trump cyclical upswing, few investors were interested in discussing new short ideas.
Investors Will Care About 2017 Results As Policy Clarifies: As policy clarifies, earnings should come back into focus. Notions like investors ‘don’t care about 2017’ or will ‘look through the industrials cycle’ are misreading policy uncertainty trumping earnings uncertainty.

published:25 Jan 2017

views:413

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Leadership in the 21st Century and Global Forces: Dominic Barton, McKinsey

Please join us for our featured webinar with SwatiPatel!
After graduating from New York University in 2007, Swati joined Bear Stearns to work with the Financial Analytics and Structured Transactions (FAST) desk that focused on fixed income products. Following the dissolution of Bear Stearns in 2008, Swati joined J.P. Morgan and shifted to the Foreign Exchange sales desk covering corporate clients. For the past five years, Swati managed her own sales book, which spanned the Northeast and covered clients in a number of industries such as consumer/retail, technology, diversified industrials, and pharmaceuticals. Swati is now pursuing her Masters in Business Administration at The Wharton School in order to further build upon her professional experiences.
LinkedIn: https://www.linkedin.com/in/swati-patel

Please join us for our featured webinar with SwatiPatel!
After graduating from New York University in 2007, Swati joined Bear Stearns to work with the Financial Analytics and Structured Transactions (FAST) desk that focused on fixed income products. Following the dissolution of Bear Stearns in 2008, Swati joined J.P. Morgan and shifted to the Foreign Exchange sales desk covering corporate clients. For the past five years, Swati managed her own sales book, which spanned the Northeast and covered clients in a number of industries such as consumer/retail, technology, diversified industrials, and pharmaceuticals. Swati is now pursuing her Masters in Business Administration at The Wharton School in order to further build upon her professional experiences.
LinkedIn: https://www.linkedin.com/in/swati-patel

Jamie Forese, Citigroup President and CEO, Institutional ClientsGroup, presented on the strategy and performance of Citi’s institutional business at Citi’s 2017 Investor Day on July 25, 2017.
View other Citi videos: http://www.youtube.com/citi
Read our Blog: http://blog.citigroup.com
Like us on Facebook: http://www.facebook.com/citi
Follow us on Twitter: http://www.twitter.com/citi
Follow us on LinkedIn: http://www.linkedin.com/company/citi
Follow us on Instagram: http://www.instagram.com/citi
Follow us on Google+: http://www.google.com/+citi

Jamie Forese, Citigroup President and CEO, Institutional ClientsGroup, presented on the strategy and performance of Citi’s institutional business at Citi’s 2017 Investor Day on July 25, 2017.
View other Citi videos: http://www.youtube.com/citi
Read our Blog: http://blog.citigroup.com
Like us on Facebook: http://www.facebook.com/citi
Follow us on Twitter: http://www.twitter.com/citi
Follow us on LinkedIn: http://www.linkedin.com/company/citi
Follow us on Instagram: http://www.instagram.com/citi
Follow us on Google+: http://www.google.com/+citi

We're mixing things up this week on IndustryFocus with some cross sector topics. To kick it off, Tyler Crowe of the Energy & Industrials team joins Gaby for th...

We're mixing things up this week on IndustryFocus with some cross sector topics. To kick it off, Tyler Crowe of the Energy & Industrials team joins Gaby for the Finance show to talk about how captive finance companies fit into the role of a industrial manufacturer and the challenges they can present for a company.
This podcast was recorded on Feb. 8, 2016.
Imagine owning Amazon.com (up over an insane 4,000% since 2001) when Internet sales rendered big-box retailers obsolete... Now an industry 99% of us use daily is set to implode... And 3 established companies are positioned to take advantage. Clickhttp://bit.ly/1zQXjzy for a stunning presentation.
------------------------------------------------------------------------
Subscribe to The Motley Fool's YouTube Channel:
http://www.youtube.com/TheMotleyFool
Or, follow our Google+ page:
https://plus.google.com/+MotleyFool/posts
Inside The Motley Fool: Check out our Culture Blog!
http://culture.fool.com
Join our Facebook community:
https://www.facebook.com/themotleyfool
Follow The Motley Fool on Twitter:
https://twitter.com/themotleyfool

We're mixing things up this week on IndustryFocus with some cross sector topics. To kick it off, Tyler Crowe of the Energy & Industrials team joins Gaby for the Finance show to talk about how captive finance companies fit into the role of a industrial manufacturer and the challenges they can present for a company.
This podcast was recorded on Feb. 8, 2016.
Imagine owning Amazon.com (up over an insane 4,000% since 2001) when Internet sales rendered big-box retailers obsolete... Now an industry 99% of us use daily is set to implode... And 3 established companies are positioned to take advantage. Clickhttp://bit.ly/1zQXjzy for a stunning presentation.
------------------------------------------------------------------------
Subscribe to The Motley Fool's YouTube Channel:
http://www.youtube.com/TheMotleyFool
Or, follow our Google+ page:
https://plus.google.com/+MotleyFool/posts
Inside The Motley Fool: Check out our Culture Blog!
http://culture.fool.com
Join our Facebook community:
https://www.facebook.com/themotleyfool
Follow The Motley Fool on Twitter:
https://twitter.com/themotleyfool

Consumer Goods: From the Farm to Your Dinner Table – The Lifecycle of a Chipotle Burrito

For over 20 years, Chipotle has prided itself on fresh, quality ingredients sourced from only the best vendors -- in other words, “food with integrity”.
Asit ...

For over 20 years, Chipotle has prided itself on fresh, quality ingredients sourced from only the best vendors -- in other words, “food with integrity”.
Asit Sharma joins IndustryFocus to discuss the company’s suppliers, its high standards, and some of the growing pains Chipotle has encountered adapting its supply chain to work for over 2,000 restaurants.
This podcast was recorded on May 24, 2016.
Imagine owning Amazon.com (up over an insane 4,000% since 2001) when Internet sales rendered big-box retailers obsolete... Now an industry 99% of us use daily is set to implode... And 3 established companies are positioned to take advantage. Clickhttp://bit.ly/1zQXjzy for a stunning presentation.
------------------------------------------------------------------------
Subscribe to The Motley Fool's YouTube Channel:
http://www.youtube.com/TheMotleyFool
Or, follow our Google+ page:
https://plus.google.com/+MotleyFool/posts
Inside The Motley Fool: Check out our Culture Blog!
http://culture.fool.com
Join our Facebook community:
https://www.facebook.com/themotleyfool
Follow The Motley Fool on Twitter:
https://twitter.com/themotleyfool

For over 20 years, Chipotle has prided itself on fresh, quality ingredients sourced from only the best vendors -- in other words, “food with integrity”.
Asit Sharma joins IndustryFocus to discuss the company’s suppliers, its high standards, and some of the growing pains Chipotle has encountered adapting its supply chain to work for over 2,000 restaurants.
This podcast was recorded on May 24, 2016.
Imagine owning Amazon.com (up over an insane 4,000% since 2001) when Internet sales rendered big-box retailers obsolete... Now an industry 99% of us use daily is set to implode... And 3 established companies are positioned to take advantage. Clickhttp://bit.ly/1zQXjzy for a stunning presentation.
------------------------------------------------------------------------
Subscribe to The Motley Fool's YouTube Channel:
http://www.youtube.com/TheMotleyFool
Or, follow our Google+ page:
https://plus.google.com/+MotleyFool/posts
Inside The Motley Fool: Check out our Culture Blog!
http://culture.fool.com
Join our Facebook community:
https://www.facebook.com/themotleyfool
Follow The Motley Fool on Twitter:
https://twitter.com/themotleyfool

published:25 May 2016

views:253

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How to Invest in the Stock Market for Beginners | step-by-step tutorial

How to Invest in the Stock Market
Any investment involves some element of risk. These strategies are used by an experienced investor. Please use these strategies at your own risk. This video is for informational purposes only.
Step 1:
The first thing you want to be able to do is identify a sector of the market to invest in. Look for a strong sector and industry, preferably one in which you are familiar with. A sector is a large group of companies that act similarly to economic conditions. Example sectors include:
Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, Financials, Information Technology, Telecommunication Services, and UtilitiesStep 2:
Run a “GOOGLE” search of “Best performing (enter your sector choice here) this helps you to find a list of Exchange Traded Funds (ETFS) to compare and run an analysis on. There is no need to waste time or reinvent the wheel when someone else has already done all the heavy lifting for you. Remember time is of the essence.
Note: Exchange trade funds or ETFs are an investment tool, traded on a stock exchange, which holds assets such as stocks, commodities, or bonds. ETFs offer diversification, have low expense ratios, are only taxed when there are capital gains realized from sale, and can be purchased throughout the day. Since ETFs are traded on a stock exchange many brokerages charge a commission fee at every purchase or sale that can eat into your returns. The diversification of the ETFs minimize risks. The low fees and tax advantages make this a great choice for small investors.
How to Invest in the Stock Market
Step 3:
You will need a “self-directed” brokerage account to facilitate a trade of a stock, ETF, mutual fund, bond etc. They’re all pretty similar but you may want to open one with the lowest fee(s).
An account can be opened with a brokerage, I would suggest TD Ameritrade but any financial institution can work. I used TD Ameritrade because there are no fees for opening an account and no minimum balance required. TD Ameritrade also offers several exchange traded funds (ETFs) that can be traded commission free. I personally use this financial institution as you can see in the video but you can use any one you wish.
Step 4:
The analysis… The first thing you want to do is look at the ETFs “Top 10 Holdings” this is important because you want to know where your money is going and the company the ETF is invested in.
Next, you want to take a look at the price per share. This is good to know when comparing because ETFs because what you will notice is that a lot of times ETFs will be invested in the same companies; this is because they are in the same sector of the market. If you choose to buy an ETF with a lower share price then you can potentially buy more shares!
How to Invest in the Stock Market
After that you want to know how much the “dividend yield” is. A dividend is a payment made by a corporation to its shareholders, as a distribution of profits. Dividends can be reinvested and you can use them to buy more shares of the stock or ETF, this is the compound part of investing!
You then want to calculate all fees with the purchase of the ETF, this more often than not will include a “management fee” and “expense ratio” remember these cost are cumulative so you need to add them together, it is not one or the other.
How does the “dividend yield” compare with the fees.
Use this strategy to compare ETFs in your selected sector of the market once you feel comfortable and have chosen the best one go ahead and place a trade.
Investing is something everyone can do and in the long run can help you build wealth. Using the information provided you can turn a relatively small amount of money into a good deal of cash. Start investing today, it doesn’t take much. Reminder to keep costs and taxes as low as possible to maximize returns. I hope you find this information helpful.
Homework:
Compare 2 other ETFs from...http://www.etf.com/sections/features-and-news/top-tech-etfs-2016?nopaging=1
Which ETF would you buy, and why? Tell me in the comments below...
The Money MikeShow is for informational purposes only! Please use the aforementioned strategies at your own risk.
How to Invest in the Stock Market
If you found this video helpful make sure to LIKE, SHARE, and SUBSCRIBE to The Money Mike Show for helpful personal finance videos!!!
Add my social media platforms to stay current on the latest Money Mike Show videos….
https://www.youtube.com/TheMoneyMikeShowOfficial
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How to Invest in the Stock Market | Why Invest in the Stock Market | Stock Market Best Practices | Stock Market Tips | Best Way to Invest in the Stock Market | Stock Market

How to Invest in the Stock Market
Any investment involves some element of risk. These strategies are used by an experienced investor. Please use these strategies at your own risk. This video is for informational purposes only.
Step 1:
The first thing you want to be able to do is identify a sector of the market to invest in. Look for a strong sector and industry, preferably one in which you are familiar with. A sector is a large group of companies that act similarly to economic conditions. Example sectors include:
Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, Financials, Information Technology, Telecommunication Services, and UtilitiesStep 2:
Run a “GOOGLE” search of “Best performing (enter your sector choice here) this helps you to find a list of Exchange Traded Funds (ETFS) to compare and run an analysis on. There is no need to waste time or reinvent the wheel when someone else has already done all the heavy lifting for you. Remember time is of the essence.
Note: Exchange trade funds or ETFs are an investment tool, traded on a stock exchange, which holds assets such as stocks, commodities, or bonds. ETFs offer diversification, have low expense ratios, are only taxed when there are capital gains realized from sale, and can be purchased throughout the day. Since ETFs are traded on a stock exchange many brokerages charge a commission fee at every purchase or sale that can eat into your returns. The diversification of the ETFs minimize risks. The low fees and tax advantages make this a great choice for small investors.
How to Invest in the Stock Market
Step 3:
You will need a “self-directed” brokerage account to facilitate a trade of a stock, ETF, mutual fund, bond etc. They’re all pretty similar but you may want to open one with the lowest fee(s).
An account can be opened with a brokerage, I would suggest TD Ameritrade but any financial institution can work. I used TD Ameritrade because there are no fees for opening an account and no minimum balance required. TD Ameritrade also offers several exchange traded funds (ETFs) that can be traded commission free. I personally use this financial institution as you can see in the video but you can use any one you wish.
Step 4:
The analysis… The first thing you want to do is look at the ETFs “Top 10 Holdings” this is important because you want to know where your money is going and the company the ETF is invested in.
Next, you want to take a look at the price per share. This is good to know when comparing because ETFs because what you will notice is that a lot of times ETFs will be invested in the same companies; this is because they are in the same sector of the market. If you choose to buy an ETF with a lower share price then you can potentially buy more shares!
How to Invest in the Stock Market
After that you want to know how much the “dividend yield” is. A dividend is a payment made by a corporation to its shareholders, as a distribution of profits. Dividends can be reinvested and you can use them to buy more shares of the stock or ETF, this is the compound part of investing!
You then want to calculate all fees with the purchase of the ETF, this more often than not will include a “management fee” and “expense ratio” remember these cost are cumulative so you need to add them together, it is not one or the other.
How does the “dividend yield” compare with the fees.
Use this strategy to compare ETFs in your selected sector of the market once you feel comfortable and have chosen the best one go ahead and place a trade.
Investing is something everyone can do and in the long run can help you build wealth. Using the information provided you can turn a relatively small amount of money into a good deal of cash. Start investing today, it doesn’t take much. Reminder to keep costs and taxes as low as possible to maximize returns. I hope you find this information helpful.
Homework:
Compare 2 other ETFs from...http://www.etf.com/sections/features-and-news/top-tech-etfs-2016?nopaging=1
Which ETF would you buy, and why? Tell me in the comments below...
The Money MikeShow is for informational purposes only! Please use the aforementioned strategies at your own risk.
How to Invest in the Stock Market
If you found this video helpful make sure to LIKE, SHARE, and SUBSCRIBE to The Money Mike Show for helpful personal finance videos!!!
Add my social media platforms to stay current on the latest Money Mike Show videos….
https://www.youtube.com/TheMoneyMikeShowOfficial
https://www.facebook.com/themoneymikeshow/
https://plus.google.com/u/0/+TheMoneyMikeShowOfficial
How to Invest in the Stock Market | Why Invest in the Stock Market | Stock Market Best Practices | Stock Market Tips | Best Way to Invest in the Stock Market | Stock Market

Revenue Models for Consumer Retail Companies

In this RevenueModels lesson, you'll learn how to build a revenue model for a consumer retail company.
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
Chuck E. Cheese, a kids' restaurant chain that was acquired by Apollo for $1.3 billion, is used in this example since their data is readily available and easy to use
Table of Contents:
0:39 Why Revenue Models Are Important
2:19 How to Set Up Revenue Models - Units Sold and Market Size Methods
3:39 How You Build a Revenue Model - Examples for Different Industries
5:03 Step 1 - Finding Historical Data
5:59 Step 2 - Assumptions for Stores Opened and Closed
8:02 Step 3 - Assumptions for Sales per Store Growth
9:03 Step 4 - Calculating Ending Stores per Year
10:30 Step 5 - Toggle Calculations for Sales per Store
11:08 Step 6 - Splitting Revenue Into Segments
14:20 Step 7 - How to Review and Tweak the Numbers
15:18 Recap and Summary
Why Do Revenue Models Matter?
It's a very common topic in case studies and interviews in IB, PE, HFs, and anything else in finance.
Revenue models can come up in LBO case studies, 3-statement modeling case studies, normal interview questions, and, of course, on the job.
Often, you have enough data to make MORE than just a simple % growth rate assumption for revenue... but not enough data to do the same on the expense side.
Theoretically, you could just say 2%, 3%, 4%, etc. growth each year and project revenue like that.
BUT it's much more credible to say, "We have 50 stores each generating $2 million in annual sales, on average, and we plan to open 5 new stores per year for the next 5 years -- based on that, revenue is expected to be..." rather than "We're assuming 4% revenue growth per year."
The numbers you get will NOT necessarily be different or "more accurate" -- you're still predicting the future!
But at least your numbers will have more real-world support behind them...
What is a Revenue Model?
It can be done many different ways, but most revenue models boil down to Units Sold * Average Selling Price, or Total Market Size * % Market Share.
The best method depends on the available data, the work and research you've done, and what the company discloses.
For this consumer/retail example, it makes the most sense to use a variation on Units Sold * Average Selling Price, since "market share" is almost impossible to establish for a large and fragmented market like restaurants.
How Do You Build a Revenue Model?
For retailers, you can divide revenue into into existing stores vs. new stores and assume a figure for average Sales per SquareFoot/Meter, or Sales per Store, and then make assumptions for new stores opened, stores closed, and how the sales per store figures change over time.
Here's what we cover in this example for Chuck E. Cheese:
Step 1: Get the historical data you need -- in this case, the # of stores opened and closed in prior years, and the average sales per store type. These are all taken from the company's filings.
Step 2: Make assumptions for the # of stores opened and closed each year -- companies often disclose their plans in their filings, or you can extrapolate from historical data. In this case, CEC told us directly how many stores it planned to open over the next 4 years.
Step 3: Assume a growth rate in Sales per Comparable (Existing) Store, and Sales per New Store.
Step 4: Calculate Ending Stores each year, with support for the sensitivity toggles built in so that we can easily modify the assumptions.
Step 5: Now, make similar "post-toggle" calculations for Sales per New Store and Sales per Existing Store.
Step 6: Now, divide the revenue into segments, if applicable... it is very much applicable here! There are different margins for entertainment vs. food and beverages, and there's a clear trend in one direction (away from food and beverages).
Step 7: Now, go back and check your numbers, fill in the miscellaneous and smaller items, and see how equity research estimates (and other sources) compare to what you've come up with.
Go back and tweak your numbers as necessary.
What Next?
Pick a company you're interested in, in an industry that's relatively easy to analyze, and project revenue based on what's in their filings.
It doesn't have to be super-complicated -- for most companies, revenue comes down to less than 5 key drivers.
Avoid conglomerates, companies with tons of business lines, or industries that are more complex, such as oil & gas, commercial banking, etc.
Suggestions: Airlines, technology, consumer/retail, industrials/manufacturing, healthcare is iffy because it can get very complex to model a company with a huge drug portfolio.
Further Resources
http://youtube-breakingintowallstreet-com.s3.amazonaws.com/CEC-Revenue-Model.xlsx

Ryder's Consumer Products Industry Expertise

We provide distribution and transportation solutions to some of the world's leading consumer goods companies, including manufacturers and retailers of personal care, household, and food and beverage products. Our deep experience working with companies like Reckitt-Benckiser, Stonyfield Farm, Dr. Pepper/Snapple, and iGPS enables us to give our customers the extreme flexibility the industry demands, while delivering predictable results every day.

APL Logistics | Country Showcase

APL Logistics is the go-to global supply chain specialist for companies in the Automotive, Consumer, Industrials and Retail sectors.
The company has a global network covering all major markets; backed by a multinational workforce of about 7,700 people. APL Logistics is a member of the Kintetsu World Express group, a global logistics services provider.
************
LinkedIn: https://www.linkedin.com/company/apl-logistics
Facebook: https://www.facebook.com/APLLogistics
Twitter: https://www.twitter.com/APLLogistics
Google+: https://www.google.com/+APLLogisticsOnline
YouTube: https://www.youtube.com/c/APLLogisticsOnline
Wikipedia: https://www.en.wikipedia.org/wiki/APL_Logistics
Website: https://www.apllogistics.com
Email: global_marketing@apllogistics.com

11:03

APL Logistics | Country Showcase 2017

APL Logistics is the go-to global supply chain specialist for companies in the Automotive,...

APL Logistics | Country Showcase 2017

APL Logistics is the go-to global supply chain specialist for companies in the Automotive, Consumer, Industrials and Retail sectors.
The company has a global network covering all major markets; backed by a multinational workforce of about 7,700 people. APL Logistics is a member of the Kintetsu World Express group, a global logistics services provider.
************
LinkedIn: https://www.linkedin.com/company/apl-logistics
Facebook: https://www.facebook.com/APLLogistics
Twitter: https://www.twitter.com/APLLogistics
Google+: https://www.google.com/+APLLogisticsOnline
YouTube: https://www.youtube.com/c/APLLogisticsOnline
Wikipedia: https://www.en.wikipedia.org/wiki/APL_Logistics
Website: https://www.apllogistics.com
Email: global_marketing@apllogistics.com

Noctua Industrial PPC Fans!

Noctua is back in black. Finally they're here. You can have the best fans available and have your eyes not fall out of their sockets from the ugly. Did I mention they're water and dust resistant???
Modis Geekstakes Link: http://bit.ly/1mitWD0
Pricing & discussion: http://linustechtips.com/main/topic/161566-noctua-industrial-ppc-fans/
Support us: http://linustechtips.com/main/topic/75969-support-linus-tech-tips-our-affiliates-and-sponsors/
Join our community forum: http://bit.ly/ZkLvE7
https://twitter.com/linustech
http://www.facebook.com/LinusTech
IntroScreenMusicCredit: Adhesive Wombat - Check out his channel here: http://youtube.com/adhesivewombat
Outro Screen Music Credit: Approaching Nirvana - Sugar High http://www.youtube.com/approachingnirvana

2:54

GE Digital and Hewlett Packard Enterprise: Working Together on the IoT

Find out how the GE Digital & Hewlett Packard Enterprise partnership is going to build for...

GE Digital and Hewlett Packard Enterprise: Working Together on the IoT

Find out how the GE Digital & Hewlett Packard Enterprise partnership is going to build for the IndustrialInternet together.
The most valuable companies of the future are going to be the ones that drive the best outcomes on industrial assets. As partners, GE Digital and Hewlett Packard Enterprise (HPE) are going to do just that by helping our customers optimize their services around their industrial products, help them rethink their digital strategy, and identify new kinds of offerings for the Industrial Internet.
Check out the video to hear Bill Ruh, CEO, GE Digital and Chief Digital Officer, GE, and Jim Fowler, Chief Information Officer, GE, share their insights on our partnership with HPE and how we're going to build the Industrial Internet together.
Learn more about the GE Digital AllianceProgram at https://www.ge.com/digital/partners
Subscribe to the GE Digital Channel: http://www.youtube.com/user/industrialinternet?sub_confirmation=1
Connect with GE Digital Online:
Visit GE Digital’s Website: https://www.ge.com/digital
Follow GE on Twitter: https://twitter.com/GE_Digital
Find GE on LinkedIn: https://www.linkedin.com/company/2681277
Transcript:
Bill Ruh, CEO of GE Digital
Imagine a world where nothing ever breaks. Can we get greater fuel efficiency on a machine? Can the machine generate more electricity? Can we ensure that we can get rid of unscheduled downtime? These are the kinds of ground-breaking changes we're going to see.
If you think about the importance of the industrial Internet it's really about what the next decade is going to focus on the last decade was about the consumer internet. What we're talking about now is the same kind of transformation we saw in these consumer businesses in the industrial sector.
Jim Fowler, CIO GE Digital
GE Digital is all about recognizing that digital industrials are really what's going to spur the growth over the next 20 years.
Bill Ruh: Take machines but more sensors than ever before, pull data off those machines and drive greater productivity and efficiency in every part of the industrial value chain
Jim Fowler: Downtime is bad it's reduces your operating profit in the plant. It causes quality issues and so taking that data and combining it with enterprise data around demand, volume loads lets you really get the most throughput out of the product
Bill Ruh: Working with our partners like HPE we are helping our customers optimize their services around their industrial products and get benefit in a very quick win. And then helping them rethink their digital strategy and look to new kinds of offerings we feel we can do this with any industrial company.
The ability to partner together is absolutely essential because nobody can do everything in the industrial Internet.
HPE has been a great partner, they bring unique expertise to us. We began with our Predix platform cloud and using the HP Proliant servers, but that is not the end that's just the beginning.
Predix is a hybrid cloud and we have the ability to run in public cloud offerings for customers that want it that way as well is on our own private cloud.
Jim Fowler: We had to really look hard to find a partner who could provide the infrastructure to work in that hybrid cloud and we're really happy with what we found with Hewlett Packard Enterprise.
Bill Ruh: You can collect data of an industrial nature build industrial analytics and then distribute that out to people and two machines to be much more efficient.
Jim Fowler: we've announced agreements with other industrial companies who are going to use our Predix platform to improve the operations for themselves and for their customers I think this is a game changer really not just for our company but more importantly for our customers and it’s really what's going to spur their growth.
Bill Ruh: The most valuable companies on the planet are going to be those who can drive the best outcomes on industrial assets, and for GE, we’re a company that's in the business of building these industrial assets these are going to be unique opportunities for us an HPE, that's what excites me.

Our Industrials team, Jay Van Sciver and David Talbott, have spent much of the last couple of weeks traveling and speaking with investors.
Catch this special edition of SectorSpotlight and hear the key takeaways for their favorite long and short ideas. The topic of discussion was, "TrumpPolicyExpectations vs. Earnings Uncertainty | A Major Secular Risk."
Companies the Industrials team discussed included, Deere (DE), Wabtec (WAB), Textron (TXT) and more...
TOPICS INCLUDED:
Trump Policy Uncertainty: There is much less consensus on the impact of the Trump administration and a Republican Congress than we might have expected. While the first order effects of policy proposals can seem clear, investors are hesitant to forecast either implementation or its net impact.
Defending Existing Views, Positions: Our sense is that investors have not moved very far in adjusting to a new policy environment. Some investors try to frame evolving policy through their existing positions.
Investors Want New Longs, Not Shorts: Perhaps not wanting to miss out on a potential Trump cyclical upswing, few investors were interested in discussing new short ideas.
Investors Will Care About 2017 Results As Policy Clarifies: As policy clarifies, earnings should come back into focus. Notions like investors ‘don’t care about 2017’ or will ‘look through the industrials cycle’ are misreading policy uncertainty trumping earnings uncertainty.

1:02:07

Leadership in the 21st Century and Global Forces: Dominic Barton, McKinsey

The Darden Leadership Speaker Series kicks-off its 2016-17 season with Dominic Barton, Glo...

S&T Industry Roundtable

Please join us for our featured webinar with SwatiPatel!
After graduating from New York University in 2007, Swati joined Bear Stearns to work with the Financial Analytics and Structured Transactions (FAST) desk that focused on fixed income products. Following the dissolution of Bear Stearns in 2008, Swati joined J.P. Morgan and shifted to the Foreign Exchange sales desk covering corporate clients. For the past five years, Swati managed her own sales book, which spanned the Northeast and covered clients in a number of industries such as consumer/retail, technology, diversified industrials, and pharmaceuticals. Swati is now pursuing her Masters in Business Administration at The Wharton School in order to further build upon her professional experiences.
LinkedIn: https://www.linkedin.com/in/swati-patel

20:23

The paradox of choice | Barry Schwartz

http://www.ted.com Psychologist Barry Schwartz takes aim at a central tenet of western soc...

Citi’s 2017 Investor Day: Institutional Clients Group

Jamie Forese, Citigroup President and CEO, Institutional ClientsGroup, presented on the strategy and performance of Citi’s institutional business at Citi’s 2017 Investor Day on July 25, 2017.
View other Citi videos: http://www.youtube.com/citi
Read our Blog: http://blog.citigroup.com
Like us on Facebook: http://www.facebook.com/citi
Follow us on Twitter: http://www.twitter.com/citi
Follow us on LinkedIn: http://www.linkedin.com/company/citi
Follow us on Instagram: http://www.instagram.com/citi
Follow us on Google+: http://www.google.com/+citi

We're mixing things up this week on IndustryFocus with some cross sector topics. To kick it off, Tyler Crowe of the Energy & Industrials team joins Gaby for the Finance show to talk about how captive finance companies fit into the role of a industrial manufacturer and the challenges they can present for a company.
This podcast was recorded on Feb. 8, 2016.
Imagine owning Amazon.com (up over an insane 4,000% since 2001) when Internet sales rendered big-box retailers obsolete... Now an industry 99% of us use daily is set to implode... And 3 established companies are positioned to take advantage. Clickhttp://bit.ly/1zQXjzy for a stunning presentation.
------------------------------------------------------------------------
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Consumer Goods: From the Farm to Your Dinner Table – The Lifecycle of a Chipotle Burrito

For over 20 years, Chipotle has prided itself on fresh, quality ingredients sourced from only the best vendors -- in other words, “food with integrity”.
Asit Sharma joins IndustryFocus to discuss the company’s suppliers, its high standards, and some of the growing pains Chipotle has encountered adapting its supply chain to work for over 2,000 restaurants.
This podcast was recorded on May 24, 2016.
Imagine owning Amazon.com (up over an insane 4,000% since 2001) when Internet sales rendered big-box retailers obsolete... Now an industry 99% of us use daily is set to implode... And 3 established companies are positioned to take advantage. Clickhttp://bit.ly/1zQXjzy for a stunning presentation.
------------------------------------------------------------------------
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http://www.youtube.com/TheMotleyFool
Or, follow our Google+ page:
https://plus.google.com/+MotleyFool/posts
Inside The Motley Fool: Check out our Culture Blog!
http://culture.fool.com
Join our Facebook community:
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Follow The Motley Fool on Twitter:
https://twitter.com/themotleyfool

21:23

How to Invest in the Stock Market for Beginners | step-by-step tutorial

How to Invest in the Stock Market
Any investment involves some element of risk. These str...

How to Invest in the Stock Market for Beginners | step-by-step tutorial

How to Invest in the Stock Market
Any investment involves some element of risk. These strategies are used by an experienced investor. Please use these strategies at your own risk. This video is for informational purposes only.
Step 1:
The first thing you want to be able to do is identify a sector of the market to invest in. Look for a strong sector and industry, preferably one in which you are familiar with. A sector is a large group of companies that act similarly to economic conditions. Example sectors include:
Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, Financials, Information Technology, Telecommunication Services, and UtilitiesStep 2:
Run a “GOOGLE” search of “Best performing (enter your sector choice here) this helps you to find a list of Exchange Traded Funds (ETFS) to compare and run an analysis on. There is no need to waste time or reinvent the wheel when someone else has already done all the heavy lifting for you. Remember time is of the essence.
Note: Exchange trade funds or ETFs are an investment tool, traded on a stock exchange, which holds assets such as stocks, commodities, or bonds. ETFs offer diversification, have low expense ratios, are only taxed when there are capital gains realized from sale, and can be purchased throughout the day. Since ETFs are traded on a stock exchange many brokerages charge a commission fee at every purchase or sale that can eat into your returns. The diversification of the ETFs minimize risks. The low fees and tax advantages make this a great choice for small investors.
How to Invest in the Stock Market
Step 3:
You will need a “self-directed” brokerage account to facilitate a trade of a stock, ETF, mutual fund, bond etc. They’re all pretty similar but you may want to open one with the lowest fee(s).
An account can be opened with a brokerage, I would suggest TD Ameritrade but any financial institution can work. I used TD Ameritrade because there are no fees for opening an account and no minimum balance required. TD Ameritrade also offers several exchange traded funds (ETFs) that can be traded commission free. I personally use this financial institution as you can see in the video but you can use any one you wish.
Step 4:
The analysis… The first thing you want to do is look at the ETFs “Top 10 Holdings” this is important because you want to know where your money is going and the company the ETF is invested in.
Next, you want to take a look at the price per share. This is good to know when comparing because ETFs because what you will notice is that a lot of times ETFs will be invested in the same companies; this is because they are in the same sector of the market. If you choose to buy an ETF with a lower share price then you can potentially buy more shares!
How to Invest in the Stock Market
After that you want to know how much the “dividend yield” is. A dividend is a payment made by a corporation to its shareholders, as a distribution of profits. Dividends can be reinvested and you can use them to buy more shares of the stock or ETF, this is the compound part of investing!
You then want to calculate all fees with the purchase of the ETF, this more often than not will include a “management fee” and “expense ratio” remember these cost are cumulative so you need to add them together, it is not one or the other.
How does the “dividend yield” compare with the fees.
Use this strategy to compare ETFs in your selected sector of the market once you feel comfortable and have chosen the best one go ahead and place a trade.
Investing is something everyone can do and in the long run can help you build wealth. Using the information provided you can turn a relatively small amount of money into a good deal of cash. Start investing today, it doesn’t take much. Reminder to keep costs and taxes as low as possible to maximize returns. I hope you find this information helpful.
Homework:
Compare 2 other ETFs from...http://www.etf.com/sections/features-and-news/top-tech-etfs-2016?nopaging=1
Which ETF would you buy, and why? Tell me in the comments below...
The Money MikeShow is for informational purposes only! Please use the aforementioned strategies at your own risk.
How to Invest in the Stock Market
If you found this video helpful make sure to LIKE, SHARE, and SUBSCRIBE to The Money Mike Show for helpful personal finance videos!!!
Add my social media platforms to stay current on the latest Money Mike Show videos….
https://www.youtube.com/TheMoneyMikeShowOfficial
https://www.facebook.com/themoneymikeshow/
https://plus.google.com/u/0/+TheMoneyMikeShowOfficial
How to Invest in the Stock Market | Why Invest in the Stock Market | Stock Market Best Practices | Stock Market Tips | Best Way to Invest in the Stock Market | Stock Market

Sector Spotlight | Industrials: April 11, 2017...

Sector Spotlight | Restaurants & Consumer Staples ...

Sector Spotlight | Industrials Analyst Jay Van Sci...

Leadership in the 21st Century and Global Forces: ...

S&T Industry Roundtable...

The paradox of choice | Barry Schwartz...

Citi’s 2017 Investor Day: Institutional Clients Gr...

14. Portfolio Theory...

Mash Up Week: Industrials & Finance Talk Captive F...

NCERT Class 10 Geography Chapter 6: Manufacturing ...

The New Investment Climate -Francisco Cabrera-...

Captives Response: To changing customer expectatio...

Consumer Goods: From the Farm to Your Dinner Table...

How to Invest in the Stock Market for Beginners | ...

It turns out that a theory explaining how we might detect parallel universes and prediction for the end of the world was proposed and completed by physicist Stephen Hawking shortly before he died ... &nbsp;. According to reports, the work predicts that the universe would eventually end when stars run out of energy ... ....

Article by WN.Com Correspondent Dallas DarlingIt wasn’t very long ago Republicans were accusing Democrats of either paying a few dollars to the homeless for votes or giving them a pack of cigarettes. But with Donald Trump, it’s obvious he paid $130,000 to an adult-film star in exchange for her silence last October and just before the general election ... Was the payment from his own account – or from a lawyer – or from campaign donations....

Using e-cigarettes may lead to an accumulation of fat in the liver, a study of mice exposed to the devices suggests ... But because extra fat in the liver is likely to be detrimental to health, we conclude that e-cigarettes are not as safe as they have been promoted to consumers,” said lead author Theodore C. Friedman of Charles R. Drew University of Medicine and Science in Los Angeles, California ... Follow @htlifeandstyle for more ....

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Forty-five US trade associations representing some of the largest companies in the country are urging PresidentDonald Trump not to impose tariffs on China, warning it would be "particularly harmful" to the US economy and consumers... The organizations said in a letter sent to Trump on Sunday that potential tariffs on China would raise prices on consumer goods, kill jobs and drive down financial markets....

Forty-five US trade associations representing some of the largest companies in the country are urging PresidentDonald Trump not to impose tariffs on China, warning it would be "particularly harmful" to the US economy and consumers. The organizations said in a letter sent to Trump on Sunday that potential tariffs on China would raise prices on consumer goods, kill jobs and drive down financial markets....

In a letter to Trump, forty five trade associations representing retail, technology, agriculture and other consumer-product industries warned that the tariffs on China would have some harmful consequences like raising the prices of consumer goods, killing jobs and driving down financial markets ... Trump has already begun to take more aggressive steps he says are needed to protect domestic industry....

economy and consumers. The organizations said in a letter sent to Trump on Sunday that potential tariffs on China would raise prices on consumer goods, kill jobs and drive down financial markets. The letter marks the latest in a growing rift between Trump and the business community on trade policies, as the president has begun to take more aggressive steps he says are needed to protect domestic industry....

When I was working in pharma, I was interested in having a bigger connection between the product development and consumer, and I wanted to be in a more fast-paced, product design-oriented industry... I didn’t know anything about the beauty industry ... I personally am really into the idea that hardware and software design can provide some excellent experiences for consumers today around the beauty industry....

Forty-five US trade associations representing some of the largest companies in the country are urging PresidentDonald Trump not to impose tariffs on China, warning it would be “particularly harmful” to the US economy and consumers. The organizations said in a letter sent to Trump on Sunday that potential tariffs on China would raise prices on consumer goods, kill jobs and drive down financial markets....

economy and consumers. The organizations said in a letter sent to Trump on Sunday that potential tariffs on China would raise prices on consumer goods, kill jobs and drive down financial markets. The letter marks the latest in a growing rift between Trump and the business community on trade policies, as the president has begun to take more aggressive steps he says are needed to protect domestic industry....

In March 1962, President Kennedy laid out in a speech to Congress the framework for a consumer bill of rights and the crucial role the federal government must play in protecting those rights. Kennedy’s call to arms is now marked every March 15 as WorldConsumer Rights Day, which seeks to advance “guidelines for consumer protection” backed by the United Nations... Kennedy proposed four basic consumer rights.....

Despite stringent laws and periodical raids by officials, the grey market is thriving as a section of consumers are satisfied with the duplicate product as long as it is cheap, overlooking the quality factor ... It is the unsuspecting consumer who falls victim to the evil designs of the grey market ... And many consumers also happily buy “genuine spares” at a cheap price without tax....

As per the BP StatisticsReport 2017, Indiaconsumed 724 million tons of oil equivalent in 2016 — the third largest consumer of primary energy in the world ... Keeping pace with economic development, India is poised to continue as one of the fastest energy consumers in the world ... Both at industry and consumer level; energy consumption would grow exponentially to sustain economic growth above 7% .&nbsp;....

ROME, March 19 (Reuters) - Italianindustrial output fell much more than expected in January after three straight monthly rises, data showed on Monday, getting the new year off to an uncertain start ...Industrial output was weak in most sectors in January and was dragged down by steep declines in output of durable consumer goods, investment products and energy products....

Nearly half of UK consumers still believe that self-driving cars will not be safe ... The auditor's report found that more than half of UK consumers would feel more comfortable being a passenger in a driverless vehicle if it was operated by a trusted brand ... Although driverless cars are still at an experimental phase, building consumer trust in the industry will be a key step in its future success.”....

China is home to the world’s second largest consumer market, and consumption has ,for the fourth consecutive year, become the largest driver of economic growth, Zhong said ... Analysts regard the lower tariff on imported cars as good news for Chinese market, as it will offer wider choices for consumers by stimulating domestic manufacturers to upgrade the industry....